Service sector expands more than expected in October: ISM

One gallon bottles of glass cleaner are filled and packaged at the S & S Soap Co. manufacturing facility in the Bronx borough of New York.

U.S. service-sector business activity picked up in October and firms took on workers despite a partial government shutdown, but new order growth slowed for a second straight month, an industry report on Tuesday showed.

The Institute for Supply Management said its services index rose a point to 55.4 last month. Economists had expected it to slip to 54.0. A reading above 50 indicates expansion.

While last month's reading was below the near eight-year high of 58.6 reached in August, it was notable for having climbed despite a political standoff in Washington that forced a partial government shutdown for the first 16 days of October.